o Permission for Domestic Supply (Rule 18): SEZ units in these sectors can now sell in the domestic market on payment of applicable duties, apart from exports.
o Relaxed Encumbrance-Free Land Norms (Rule 7): Board of Approval (BoA) may approve SEZs on mortgaged or government-leased land, easing acquisition hurdles.
o Designed to overcome infrastructural and regulatory hurdles, improving the ease of doing business.
o India’s first Export Processing Zone (EPZ), the precursor to SEZs, was established in Kandla, Gujarat in 1965.
o The government initiated SEZs under the Foreign Trade Policy in 2000 to address EPZ limitations.
o The Special Economic Zones Act, 2005, and SEZ Rules, 2006 formalised SEZ operations, inspired by China’s model.
o The Board of Approval (BoA), chaired by the Secretary of the Department of Commerce, oversees SEZ approvals and policies.
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